Cutting graduate route an ‘economic own goal’, warn businesses

Cutting the graduate visa route would have a serious impact on UK research and innovation and damage the wider economy, business and university leaders have warned.

Ahead of the publication of a pivotal Migration Advisory Committee (MAC) report into the UK’s post-study work visa, 17 leaders from Chambers of Commerce and business networks from across the UK have written to the chancellor to warn against watering it down or scrapping it altogether.

It is the latest attempt by the sector to exert influence over the government on what has become a crunch issue, with protecting the visa widely seen as one of the only ways of averting further financial turmoil in the sector. 

The letter, coordinated by the University Alliance group of universities, has also been signed by leaders from the Russell Group and Universities UK.

It argues that if the government were to place any restrictions on the graduate visa route, it would have a “serious impact upon R&D capacity and return on government investment, besides causing damage to the wider economy”.

The higher education sector is the second largest investor in research in the UK, spending £5.6 billion on research in 2021.

The letter argues that because most of this investment is generated by tuition fee income from overseas recruitment, fewer international students in the UK will mean reduced investment in R&D.

Vivienne Stern, chief executive of Universities UK, said the UK seems “intent on dismantling” all the benefits that international students bring to the country, and warned that any changes to the graduate route will inevitably mean a decline in the UK’s research power.

“Universities of all shapes and sizes will need to make difficult choices about where to invest diminishing resources,” added Ms Stern. “This will mean further cuts to staffing, courses and research investment.”

“The business community and the higher education sector alike are worried about this because we know what it means: a crushing blow to our local economies.”

The letter cites data collated by IDP Connect that indicates that if the graduate route were removed, 45 per cent of international students would study elsewhere.

Jane Harrington, vice-chancellor of the University of Greenwich and chair of University Alliance, said restricting the graduate route would make UK universities less globally competitive.

“The government would need to find ways of covering the significant losses to research funding and wider export income caused by declining international student numbers. “This would be an extraordinary economic own goal.”

patrick.jack@timeshighereducation.com